The Soda Corp. has decided to launch a new product of canned drink that will include...
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The Soda Corp. has decided to launch a new product of canned drink that will include "fruity" flavors,. The marketing department is predicting that there will be an increase in demand because of a positive response to their marketing strategies and public awareness. They have prepared an aggregate forecast for the next six months as per below table: Month | 1 12 13 41 51 61 total Forecast 25,000 | 30,0001 35,000 | 45,000 | 40, 000 | 35, 0001 210,000 The production department has, provided the following cost information to meet forecasted demand: Regular production capacity @ 30 load Regular production cost @P 10,000 per load Backlogs are not allowed Holding cost @ P20,000 per load Overtime production cost @P 16,000 per load Subcontracting cost @ P18,000 per load There is O beginning inventory Among the strategies being considered by the management are: 1. Level production supplemented by up to 5 loads a month from overtime. 2. A combination of overtime, inventory and subcontracting. Regular production should be the same for the 6 months. 3. Using overtime up to 15 loads per month, with inventory to handle variability. Regular production should be the same also for 6-month period. The Soda Corp. has decided to launch a new product of canned drink that will include "fruity" flavors,. The marketing department is predicting that there will be an increase in demand because of a positive response to their marketing strategies and public awareness. They have prepared an aggregate forecast for the next six months as per below table: Month | 1 12 13 41 51 61 total Forecast 25,000 | 30,0001 35,000 | 45,000 | 40, 000 | 35, 0001 210,000 The production department has, provided the following cost information to meet forecasted demand: Regular production capacity @ 30 load Regular production cost @P 10,000 per load Backlogs are not allowed Holding cost @ P20,000 per load Overtime production cost @P 16,000 per load Subcontracting cost @ P18,000 per load There is O beginning inventory Among the strategies being considered by the management are: 1. Level production supplemented by up to 5 loads a month from overtime. 2. A combination of overtime, inventory and subcontracting. Regular production should be the same for the 6 months. 3. Using overtime up to 15 loads per month, with inventory to handle variability. Regular production should be the same also for 6-month period.
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